Section 50151 of the IRA appropriates $2 billion to the Federal Energy Regulatory Commission (“FERC”) to establish a loan program for the construction or modification of certain electric transmission infrastructure. Specifically, under the program, FERC may provide loans to non-Federal borrowers for the construction or modification of electric transmission facilities designated by the Secretary of Energy to be necessary in the public interest under section 216 of the Federal Power Act, 16 U.S.C. 824(p)(a). Loans may not exceed 80% of the total cost of the project and have a term not exceeding 90% of the facilities projected useful life or 30 years (whichever is shorter).
The funds under section 50151 of the IRA will remain available through September 30, 2030. Disbursements under loan agreements may continue until September 30, 2031.
Eligible Entities:
Current Status:
Section 50402 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- House Committee on Energy and Commerce Proposes IRA Rollbacks to DOE Programs [05/13/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Section 50151 of the IRA appropriates $2 billion to FERC to establish a loan program for the construction or modification of certain electric transmission infrastructure to be used by September 30, 2031. On May 8, 2024, the U.S. Department of Energy (DOE) announced minimum eligibility criteria for direct loans under the TFF program. DOE anticipates opening the TFF program in 2025. In December 2024, DOE advanced three regions to the final stage required for National Interest Electric Transmission Corridor designation, a prerequisite for any project to be eligible for the IRA’s Transmission Facility Financing loan program.